Hubbell Realty Co. will begin construction of a $9.4 million rental townhome project in Oskaloosa this fall, the company announced.

Called Westgate Townhomes, the project will be located at Suffolk Road and Coal Mine Loop, a growing area just east of Iowa Highway 163.

The project has received support from Iowa Economic Development Authority’s Workforce Housing Tax Credits, a Thriving Community designation from the State of Iowa and a $1 million redevelopment tax credit award.

The 48 townhomes will feature 22 two-bedroom and 26 three-bedroom homes, garages and will include all appliances, washers and dryers, and private entrances.

“Despite experiencing healthy employment growth and recent business expansions to the region’s major employers, new rental housing supply has not matched the demand,” Matt Weller, Hubbell’s vice president development, said in a prepared statement. “We know it’s critical to provide a variety of housing options, both rentals and for sale products” to mid-sized communities in Iowa.

The area surrounding Oskaloosa has been growing. Musco Sports Lighting recently completed a multimillion-dollar, 74,000-square-foot renovation and expansion to its campus and announced a new 30,000-square-foot facility for product development and testing.

Clow Valve, a local employer that specializes in waterworks infrastructure, also recently completed a new $80 million, 36,000-square-foot expansion that is expected to double production capacity and create new employment opportunities.

Construction of Westgate Townhomes is expected to begin in mid- to late 2026 with completion in 2027.